the second wind 2014 annual agency survey report · 2017. 11. 20. · 4 financials 2014 annual...
TRANSCRIPT
THE SECOND WIND
2014 Annual Agency Survey Report
PRINCIPALS’ EDITION
22014 ANNUAL SURVEY
LETTER FR
OM
SECO
ND
WIN
D
November 26, 2014
Dear Second Wind Member,
Following are the results of Second Wind’s 2014 Annual Agency Survey.
This survey allows you to compare your data with the average data of other Second Wind members. The most complete survey of smaller to midsize agencies that exists today, this is one of the reasons your Second Wind mem-bership is so valuable. The survey is a wonderful agency management tool, pinpointing areas where your operation is strong, and where it may need improvement. In the past, some of our members have put this data into spreadsheets, aligned these results with their own numbers, and developed this information into useful analytical tools.
Remember, different isn’t necessarily bad. If your data is not in line with the average member’s, you are not necessarily doing things all wrong. If you have concerns that you would like to discuss, feel free to call us.
We received 130 responses to this year’s survey questionnaire—approxi-mately 20% of the total Second Wind membership. We thank all of you who responded for providing their data. To those who did not respond—but who clamor for the results (you know who you are)—we look forward to your par-ticipation in the 2015 Annual Agency Survey.
I hope this survey report contributes to greater profitability for you in 2015. If you have any questions regarding this information, please call us at 610-374-9093 or email: [email protected]. We will do our best to clarify any issue.
Very truly yours,
Tony Mikes Managing Director
32014 ANNUAL SURVEY
Table of Contents
TAB
LE OF C
ON
TENTS
Financials ................................................................... 4
Payroll and Employee Benefits ................................9
Accounting/Operations .........................................19
Planning/New Business ...........................................25
Technology/Software .............................................29
Digital Services.........................................................32
Agency Principal Information ................................35
Detailed Salaries and Hourly Rates .......................39
4
FINA
NC
IALS
2014 ANNUAL SURVEY
The financial data reported in Second Wind’s 2014 Annual Agency Survey shows significant improvement for agen-cies from 2012 to 2013. Average total billings increased from $5,618,332 to $6,700,023, affirming that business is growing for smaller to midsize agencies.
Several billings areas increased, with creative services growing dramatically from $985,338 to $1,218,141, and account service growing from $542,384 to $646,812. Both of these functions are primarily time based, demonstrating that agencies are focused on capturing every hour they can.
The majority of other billing categories remained stable with online media holding strong at $508,683, account planning at $287,273 and digital/internet related billings at $406,129.
Total direct costs were up slightly in terms of dollars reported at $3,538,780. This represents 52.8% of billings, a slight decrease from last year (55.5% of billings).
Margins rose in many cases compared to last year’s survey. Traditional and online media both increased slightly; tradi-tional media increased from 10.2% to 12.4% and online media increased from 9.7% to 9.8%. Additionally, creative services increased from 80.7% to 84.3% and account service increased from 88.2% to 91.3%.
Total AGI showed a nice increase, rising from $2,500,794 to $3,161,243 and capitalized billings were reported at $21,085,491, a significant increase from $16,680,296.
Overall, total business expenses rose in terms of dollars ($2,445,974) but decreased as a percentage of AGI, which is good news for agencies. The biggest expense (and perhaps
Financial Summary
$6,700,023Average total billings
$3,161,243Average AGI
5
FINA
NC
IALS
2014 ANNUAL SURVEY
your best investment if you have a productive team), is pay-roll. Salaries rose again this year, reported at $1,576,911 versus $1,234,507. Since economic times are improving, this may be attributed to increases in staff and overall wages. Payroll is re-ported as 49.9% of AGI—right on target with our recommenda-tion of 50-55% of AGI.
After payroll, the biggest agency expense (6.2% of AGI) is pay-roll taxes, with an average of $195,501 spent annually. Building mortgage/rent and employee insurance also account for a large portion of expenses, with agencies dedicating $118,855 and $92,612 respectively. Both of these expenses are up slightly from last year but have decreased as a percentage of AGI.
Most other agency expenses were similar to last year’s num-bers, with marginal increases or decreases in all areas.
The remainder of the statement looks good, with net income increasing from $493,027 to $715,269. Interest earned by agen-cies rose slightly from $3,260 to $6,222 and discounts earned increased from $13,834 to $21,212. Regarding other expenses, finance charges increased from $2,650 to $12,069, and penal-ties decreased significantly from $14,850 to $2,855.
Under additional compensation, employee bonuses increased from $75,782 to $93,140, and profit-sharing contributions in-creased from $50,071 to $67,410. Owner/partner bonuses decreased slightly from $98,426 to $86,540. The more positive business climate means more principals may have returned their salaries to normal levels, decreasing end-of-year bonuses to offset salary cuts taken during rocky economic times.
Overall, responding agencies ended the year in a good posi-tion, with an average net profit (before taxes) of $469,550, ac-counting for 14.9% of AGI.
Our business continues to move in a positive direction. Keep up the good work, everyone!
$715,269Average net income
$469,550Average net profit
6
FINA
NC
IALS
2014 ANNUAL SURVEY
2013 M
EAN
/AVER
AG
E U
S DO
LLAR
S ($)
2013 PER
CEN
T O
F BILLING
S
2013 PER
CEN
T OF
DIR
ECT C
OSTS
2013 M
AR
GIN
BILLIN
GS
Trad
ition
al M
ed
ia1
,98
9,5
18
29
.7%
On
line
Me
dia
50
8,6
83
7.6
%
Cre
ativ
e1
,21
8,1
41
18
.2%
Ac
co
un
t Serv
ice
64
6,8
12
9.7
%
Ac
co
un
t Pla
nn
ing
/Strate
gy/R
ese
arc
h2
87
,27
34
.3%
Dig
ital &
Inte
rne
t-rela
ted
40
6,1
29
6.1
%
Prin
ting
29
3,2
16
4.4
%
Ph
oto
gra
ph
y6
1,2
39
0.9
%
Trav
el &
Ente
rtain
me
nt
44
,03
90
.7%
Pu
blic
Re
latio
ns
30
1,9
05
4.5
%
Oth
er O
utsid
e P
urc
ha
ses
35
4,7
71
5.3
%
Misc
ella
ne
ou
s5
88
,29
78
.8%
TOTA
L BILLIN
GS
6,7
00
,02
31
00
%
DIR
ECT C
OSTS
Trad
ition
al M
ed
ia1
,74
2,9
03
26
.0%
49
.3%
12
.4%
On
line
Me
dia
45
8,8
63
6.8
%1
3.0
%9
.8%
Cre
ativ
e1
91
,39
52
.9%
5.4
%8
4.3
%
Ac
co
un
t Serv
ice
56
,30
40
.8%
1.6
%9
1.3
%
Ac
co
un
t Pla
nn
ing
/Strate
gy/R
ese
arc
h6
4.3
64
1.0
%1
.8%
77
.6%
Dig
ital &
Inte
rne
t-rela
ted
98
,10
61
.5%
2.8
%7
5.8
%
Prin
ting
21
4,9
29
3.2
%6
.1%
26
.7%
Ph
oto
gra
ph
y3
8,4
24
0.6
%1
.1%
37
.3%
Trav
el &
Ente
rtain
me
nt
35
,26
70
.5%
1.0
%1
9.9
%
Pu
blic
Re
latio
ns
39
,09
70
.6%
1.1
%8
7.0
%
Oth
er O
utsid
e P
urc
ha
ses
21
6,9
57
3.2
%6
.1%
38
.8%
Misc
ella
ne
ou
s3
82
,17
15
.7%
10
.8%
35
.0%
TOTA
L DIR
ECT C
OSTS
3,5
38
,78
05
2.8
%1
00
%
TOTA
L AG
I (adjusted gross incom
e)3
,16
1,2
43
47
.2%
AG
I = TOTA
L BILLIN
GS m
inus TOTA
L DIR
EC
T C
OST
S
CA
PITA
LIZED B
ILLING
S21,085,491
CA
PITA
LIZE
D B
ILLING
S = AG
I times 6
.67
2012 M
EAN
/AVER
AG
E U
S DO
LLAR
S ($)
2012 PER
CEN
T O
F BILLING
S
2012 PER
CEN
T OF
DIR
ECT C
OSTS
2012 M
AR
GIN
1,6
84
,64
43
0.0
%
50
5,9
61
9.0
%
98
5,3
38
17
.5%
54
2,3
84
9.7
%
24
5,1
71
4.4
%
42
3,2
52
7.5
%
24
8,8
79
4.4
%
40
,12
70
.7%
34
,88
60
.6%
29
1,3
27
5.2
%
30
9,2
00
5.5
%
30
7,1
63
5.5
%
5,6
18
,33
210
0%
1,5
12
,63
02
6.9
%4
8.5
%1
0.2
%
45
6,7
43
8.1
%1
4.7
%9
.7%
19
0,0
43
3.4
%6
.1%
80
.7%
64
,25
61
.1%
2.1
%8
8.2
%
66
,12
31
.2%
2.1
%7
3.0
%
11
7,4
09
2.1
%3
.8%
72
.3%
19
7,9
01
3.5
%6
.3%
20
.5%
28
,74
30
.5%
0.9
%2
8.4
%
29
,56
70
.5%
0.9
%1
5.2
%
56
,50
91
.0%
1.8
%8
0.6
%
22
6,3
66
4.0
%7
.3%
26
.8%
17
1,2
48
3.0
%5
.5%
44
.2%
3,1
17
,53
85
5.5
%1
00
%
2,5
00
,79
44
4.5
%
16,680,296
FINA
NC
IAL D
ATA
: BILLIN
GS
7
FINA
NC
IALS
2014 ANNUAL SURVEY
2013 M
EAN
/AVER
AG
E U
S DO
LLAR
S ($)
2013 PER
CEN
T O
F AG
I
SALA
RIES
Ow
ne
r/Pa
rtne
r3
56
,95
61
1.3
%
Emp
loye
e1
,21
9,9
55
38
.6%
TOTA
L SALA
RIES
1,576,91149.9%
BU
SINESS EX
PEN
SES
Pa
yroll Ta
xes
195,5016
.2%
Emp
loye
e In
sura
nc
e9
2,6
12
2.9
%
Emp
loye
e Ed
uc
atio
n/Tu
ition
Re
imb
urse
me
nt
8,9
38
0.3
%
Emp
loye
e A
ctiv
ities
13
,57
30
.4%
Bu
ildin
g R
en
t/Mo
rtga
ge
11
8,8
55
3.8
%
Bu
ildin
g M
ain
ten
an
ce
an
d R
ep
airs
11
,76
00
.4%
No
n-B
illab
le Tra
ve
l & En
terta
inm
en
t3
0,2
52
1.0
%
Au
to M
ain
ten
an
ce
8,7
03
0.3
%
Au
to Le
ase
s1
4,2
84
0.5
%
Equ
ipm
en
t Lea
ses
13
,92
60
.4%
Equ
ipm
en
t Ma
inte
na
nc
e/R
ep
airs
10
,01
80
.3%
Co
mp
ute
r Ha
rdw
are
/Pe
riph
era
ls/Softw
are
19
,95
10
.6%
Inte
rne
t Serv
ice
/We
b H
ostin
g9
,24
20
.3%
Tele
ph
on
e1
9,3
61
0.6
%
Utilitie
s1
3,4
19
0.4
%
Co
pie
s/Fax/Fe
dEx
3,3
40
0.1
%
Po
stag
e7
,71
70
.2%
Art/O
ffice
Sup
plie
s1
9,0
29
0.6
%
Pro
fessio
na
l Serv
ice
s4
4,6
28
1.4
%
Self P
rom
otio
n-P
R2
6,0
21
0.8
%
Bu
sine
ss Insu
ran
ce
13
,03
90
.4%
Pro
fessio
na
l Liab
ility Insu
ran
ce
7,8
52
0.2
%
Du
es a
nd
Sub
scrip
tion
s2
4,6
20
0.8
%
De
pre
cia
tion
47
,85
71
.5%
Misc
ella
ne
ou
s9
4,5
65
3.0
%
TOTA
L BU
SINESS EX
PEN
SES869,063
27.5%
TOTA
L OP
ERA
TING
EXP
ENSES
2,445,97477.4%
Total agency salaries plus total business expenses
2012 M
EAN
/AVER
AG
E U
S DO
LLAR
S ($)
2012 PER
CEN
T O
F AG
I
23
1,5
32
9.3
%
1,0
02
,97
54
0.1
%
1,234,50749.4%
10
8,2
57
4.3
%
90
,23
73
.6%
8,2
66
0.3
%
11
,12
40
.4%
12
2,5
42
4.9
%
12
,19
80
.5%
32
,24
71
.3%
9,2
22
0.4
%
15
,69
70
.6%
12
,85
40
.5%
9,9
43
0.4
%
18
,24
70
.7%
7,8
19
0.3
%
19
,64
70
.8%
12
,32
50
.5%
3,1
13
0.1
%
4,0
11
0.2
%
18
,21
30
.7%
38
,93
51
.6%
26
,81
61
.1%
12
,62
30
.5%
5,9
35
0.2
%
23
,18
60
.9%
52
,32
52
.1%
97
,47
83
.9%
773,26030.9%
2,007,76780.3%
FINA
NC
IAL D
ATA
: SALA
RIES &
EXP
ENSES
82014 ANNUAL SURVEY
FINA
NC
IALS
FINA
NC
IAL D
ATA
: INC
OM
E, CO
MP
ENSA
TION
& N
ET PR
OFIT
2013 M
EAN
/AVER
AG
E U
S DO
LLAR
S ($)
2013 PER
CEN
T O
F AG
I
INC
OM
E
NET O
PER
ATIN
G IN
CO
ME
715,26922.6%
AG
I minus TO
TAL O
PE
RA
TIN
G E
XP
EN
SES
OTH
ER IN
CO
ME
Inte
rest Ea
rne
d6
,22
20
.2%
Disc
ou
nts Ea
rne
d2
1,2
12
0.7
%
TOTA
L OTH
ER IN
CO
ME
27,4340.9%
OTH
ER EX
PEN
SES
Inte
rest P
aid
11
,13
90
.4%
Fina
nc
e C
ha
rge
s1
2,0
69
0.4
%
Pe
na
lties
2,8
55
0.1
%
TOTA
L OTH
ER EX
PEN
SES26,063
0.8%
AD
DITIO
NA
L CO
MP
ENSA
TION
Tota
l Emp
loye
e B
on
use
s9
3,1
40
2.9
%
Tota
l Ow
ne
r/Pa
rtne
r Bo
nu
ses
86
,54
02
.7%
Tota
l Pro
fit-Sha
ring
Co
ntrib
utio
n6
7,4
10
2.1
%
TOTA
L AD
DITIO
NA
L CO
MP
ENSA
TION
247,0907.8%
NET P
RO
FIT (OR
LOSS) B
EFOR
E TAX
ES469,550
14.9%
NE
T O
PE
RA
TIN
G IN
CO
ME
S plus OT
HE
R IN
CO
ME
minus O
TH
ER
EX
PE
NSE
S minus A
DD
ITIO
NA
L CO
MP
EN
SAT
ION
2012 M
EAN
/AVER
AG
E U
S DO
LLAR
S ($)
2012 PER
CEN
T O
F AG
I
493,02719.7%
3,2
60
0.1
%
13
,83
40
.6%
17,0940.7%
10
,14
50
.4%
2,6
50
0.1
%
14
,85
00
.6%
27,6451.1%
75
,78
23
.0%
98
,42
63
.9%
50
,07
12
.0%
224,2799.0%
258,19710.3%
92014 ANNUAL SURVEY
PAY
RO
LL & EM
PLOY
EE BEN
EFITS
The typical responding agency has 18 employees and 2 own-ers/partners. In 2013, 43% of respondents increased staff, and 22% decreased staff. For those who intended to increase staff in 2014 (54%), primary areas included account service (73%), creative (54%), and interactive/digital (45%). Seventy-eight per-cent stated their primary reason for increasing staff in 2013 was to service new accounts.
Average base salaries (excluding bonuses) have improved slightly over last year’s levels, with the highest employee sala-ries being paid to Creative Directors ($108,231), Account Su-pervisors/Directors ($90,748) and Assistant Creative Directors ($85,439).
Thirty-two percent of responding agencies employ full-time New Business Developers, a decrease from 42% in the 2013 survey. Of those agencies, 63% pay those individuals on a salary-plus-commission basis. This is down slightly from last year when 68% paid salary-plus-commission. An additional 25% pay straight salary. Average New Business Developer compensation was $77,975, increasing from $69,375 last year.
The percentage of responding agencies using freelance or part-time employees increased slightly to 94%. There are many areas where agencies outsource, but web programming (63%), creative/design (56%), and copywriting (51%) remain the high-est ranking categories.
Many agencies are committed to outsourcing, with 25% out-sourcing regularly and 75% outsourcing as needed or by proj-ect. Ninety-four percent of agencies find freelancers via recom-mendation; and 17% use local temp or staffing firms.
of respondents increased staff in 2013
43%
Payroll & Employee Benefits Summary
102014 ANNUAL SURVEY
PAY
RO
LL & EM
PLOY
EE BEN
EFITS
Seventy-nine percent of respondents provide job descriptions for their employees. Second Wind is a big proponent of job descriptions, as they help both employer and employee under-stand roles and expectations. Regular employee reviews also help to set expectations and outline goals for performance and achievement. Most responding agencies are already aware of the benefits of job descriptions and performance reviews: 89% conduct regular performance reviews, and 74% conduct them annually.
Policies and procedures manuals continue to be an important part of running and growing a successful agency, as 86% of responding agencies agree. This number has increased slightly over the years, which is a good thing for employees and em-ployers. The use of non-piracy contracts for employees and non-circumvention agreements for freelancers remains stable, with 67% using non-piracy contracts and 72% using freelancer non-circumvention agreements. We recommend that agen-cies use these agreements whenever possible. While instituting agreements with current employees/freelancers may be dif-ficult, agencies must take steps to protect their businesses—and intellectual capital—by ensuring that all new hires sign these.
The number of agencies paying employee bonuses increased in 2013, with 62% of agencies offering this benefit to employ-ees as compared to 58% in 2012. Agency participation rates increased, with average bonus amounts totaling $5,037 per employee; up from last year’s figure of $2,954. Forty-eight per-cent offered profit sharing, with decreased average employee contributions at 4%.
Agencies’ health insurance expense decreased slightly to an average of $71,119 per agency. Agencies also covered an average of 21 individuals on their polices. As health insurance continues to rise, it is not uncommon for employers to ask em-ployees to contribute to their premiums, and agencies are no exception to this rule. Of respondents, 29% cover 100% of em-ployee premiums, 19% pay 50% and 14% pay 80%.
Agency owners are typically a generous group even in tough times, as seen in the wide variety of benefits available to agen-cy employees. In addition to an average of 9 paid holidays, 38% offer two weeks vacation at time of hire (slightly less than last year’s figure of 41%); 17% offer two weeks after one year; 8% offer 5 personal days per year; and 22% offer personal days
of agencies offered employee bonuses
in 2013
62%
74%
of agencies facilitate performance reviews
annually
of agencies execute regular performance reviews
89%
2013 CALENDAR
112014 ANNUAL SURVEY
PAY
RO
LL & EM
PLOY
EE BEN
EFITS
as needed. Twenty-nine percent of agencies do not offer any personal days to employees. Additionally, 40% of agencies offer 5 sick days per year, with 13% offering them on an as needed basis. Fourteen percent of respondents do not offer any sick days. Forty-nine percent of agencies now roll vacation, sick and personal days into a paid-time-off package (PTO).
Agencies offer a variety of other benefits, including life insur-ance (71%); dental/vision coverage (82%); reimbursement for professional training (80%); 401K (84%); and leaves of absence (85%).
122014 ANNUAL SURVEY
PAYROLL & EMPLOYEE BENEFITS DATA
1. Number of owners/partners at your agency: 2 Owners/partners
2. Number of people employed by your agency: 18 Employees
3. In 2013, your staff: 43% Increased
35% No change
22% Decreased
4. Plan to increase/decrease your staff in 2014: 54% Increase
39% No change
7% Decrease
In which departments do you plan to increase staff? 73% Account Service
54% Creative
45% Interactive/Digital
15% Financial/Administration
15% Traffic/Production
12% Public Relations
12% New Business
9% Planning
6% Media
5% Other
Your primary reason for increasing staff in 2014: 78% Service new accounts
9% Add new departments
0% Merger
14% Other
5. Employ a full-time New Business Developer: 32% yes
The New Business Developer is paid: 63% Salary plus commission
25% Straight salary
5% Straight commission
Your New Business Developer’s total
compensation in 2013 was: $77,975
6. You employ a full-time Traffic Manager 28% yes
A full-time Production Manager 44% yes
A full-time Project Manager 38% yes
PAY
RO
LL & EM
PLOY
EE BEN
EFITS
132014 ANNUAL SURVEY
PAYROLL & EMPLOYEE BENEFITS DATA PAY
RO
LL & EM
PLOY
EE BEN
EFITS
7. Your agency uses outsourced/freelance/ 94% yes
part-time employees:
Percentage of staff that fits this description: 12%
8. Job functions/areas in which you outsource: 63% Web Programming
56% Creative/Design
51% Copywriting
30% Digital Design
28% Production
29% Proofreading
19% Media Planning/Buying
18% Public Relations
14% Research
12% Bookkeeping
6% Other
9. You outsource: 25% Regularly
75% As needed/by project
0% Per client request
10. You find outsourced people: 94% By word of mouth/recommendation
17% Through local temp/staffing firms
12% Through national staffing firms
11. You have employees who telecommute: 42% yes
12. You provide job descriptions for all positions in your agency: 79% yes
13. Regularly review employee performance: 89% yes
How often? 74% Annually
19% Semi-annually
7% Other
14. Have an employee policies and procedures manual: 86% yes
142014 ANNUAL SURVEY
PAYROLL & EMPLOYEE BENEFITS DATA PAY
RO
LL & EM
PLOY
EE BEN
EFITS
15. Use employee non-piracy contracts: 67% yes
Freelancer non-circumvention agreements: 72% yes
16. Of those paying bonuses in 2013 (62%),
the average amount paid: $5,037
17. Have a profit-sharing program: 48% yes
Average contribution per employee in 2013: 4%
18. Percentage of employees’ health care benefits you pay: 29% Pay 100%
14% Pay 80%
19% Pay 50%
0% Pay 25%
1% Pay less than 25%
6% Pay none
32% Other
19. Percentage of dependent’s health care benefits you pay: 7% Pay 100%
3% Pay 80%
11% Pay 50%
3% Pay 25%
0% Pay less than 25%
56% Pay none
19% Other
20. Average total health care benefits expense in 2013: $71,119
Average number of individuals covered: 21
21. Offer employees all-in-one PTO with personal
and sick days combined: 49% yes
152014 ANNUAL SURVEY
PAYROLL & EMPLOYEE BENEFITS DATA PAY
RO
LL & EM
PLOY
EE BEN
EFITS
22. How employees become elligible for PTO: 46% They start to accrue days
based on hours worked each
pay period
15% They are offered a bank of
days after one year of service;
additional days based on
tenure
38% Other
23. Number of PTO days your full-time employees 24% 10 days
earn after one year of service: 34% 15 days
10% 20 days
0% 25 days
1% 26+ days
30% Other
24. If you do not offer PTO, your paid vacation policy is: 38% 2 weeks to start
17% 2 weeks after 1 year
12% 1 week to start
5% 1 week after 1 year
9% Do not offer
20% Other
25. Personal day policy: 8% 5 days
15% 2 days
10% 1 day
22% As needed
29% Do not offer
15% Other
26. Sick day policy: 12% 6 days
40% 5 days
5% 3 days
13% As needed
14% Do not offer
17% Other
162014 ANNUAL SURVEY
PAYROLL & EMPLOYEE BENEFITS DATA PAY
RO
LL & EM
PLOY
EE BEN
EFITS
27. The average number of paid holidays: 9 days
28. Pay overtime to salaried employees: 2% yes
29. Offer compensatory time: 39% yes
30. Offer company-sponsored social functions: 92% Holiday party
87% Luncheons
48% Company picnic
32% Awards dinners
27% Other
31. What additional benefits do you offer?
LIfe insurance 71% yes
Disability insurance 70% yes
Dental/vision insurance 82% yes
Parking/commuting expenses 34% yes
On-premises snacks/drinks/lunchroom 86% yes
Paid professional training/education/tuition reimbursement 80% yes
Paid professional association dues 84% yes
Leaves of absence (maternity/paternity, compassionate, etc.) 85% yes
On-site child care 1% yes
Retirement plan/401(k) 84% yes
32. Other benefits/perks you offer:
•Birthdayoff • Cafeteriaplan
•Flex-time • Healthclubmembership
•SimpleIRA • Summerhours
•Weeklylunches • Wellnessprogram
172014 ANNUAL SURVEY
PAY
RO
LL & EM
PLOY
EE BEN
EFITS
2014 NATIONAL AVERAGE SALARIES
Position Average
Account Supervisor/Director $90,748
Account Manager 73,524
Account Executive 55,303
Account Planner 77,125
Account Assistant 35,345
Creative Director 108,231
Assistant Creative Director 85,439
Digital Creative Director 82,088
Art Director 64,188
Senior Designer 61,825
Designer 48,484
Entry Level Designer 34,919
Production Artist 45,242
Senior Digital Designer 65,343
Digital Designer 52,709
Digital Production Artist 43,164
Senior Copywriter 71,638
Copywriter 54,688
Entry Level Copywriter 35,103
Production Manager 59,292
Traffic Manager 48,600
Project Manager 52,749
Controller/Business Manager 67,947
CEO 165,590
CFO 99,725
COO 129,305
Bookkeeper $44,808
182014 ANNUAL SURVEY
PAY
RO
LL & EM
PLOY
EE BEN
EFITS
2014 NATIONAL AVERAGE SALARIES
Position Average
Receptionist $35,314
Media Director 73,406
Media Planner/Buyer 52,222
Digital Media Strategist 58,132
Public Relations Director 78,487
Public Relations Account Executive 53,075
Research Director 85,000
IT Manager 76,735
Web Developer/Programmer 62,185
192014 ANNUAL SURVEY
AC
CO
UN
TING
/OPER
ATIO
NS
Fifty-nine percent of responding agencies are located in major cities or large cities with 500,000+ in population. Another 39% are located in small cities with 100,000-499,999 in population, and 2% are located in America’s small towns or rural areas.
The majority of respondents are S-corporations (59%) or C-cor-porations (25%); a smaller number (17%) operate as LLCs. When asked about their top areas of expertise, 47% focus on health care; 34% focus on education/non-profit; 32% on banking/fi-nancial; and 31% focus on industrial/marketing.
Average hourly rates by function remained stable in most areas. Notable rates include strategic planning, which currently brings in $154 per hour, and account planning and digital strategy at $140 per hour. Art direction bills an average of $137 per hour, with creative/design following closely at $136 per hour. Princi-pals are billing at an average of $181 per hour.
Seventy-two percent of respondents use a blended rate in their estimating process. Of those using a blended rate, the average was $134 per hour, a slight increase from $133 in 2013. Nineteen percent of respondents use different blended rates by function, with most agencies claiming to use special rates for account service, creative and PR.
Of survey participants, 79% are the Agency of Record for cli-ents, with 46% of clients holding this status. Eighty-four percent of agencies have signed contracts with Agency of Record cli-ents, which is increasingly important today. Gone are the days of conducting business via handshake. Contracts clarify the agency’s role, client expectations, artwork ownership, compen-sation and many other important issues. Second Wind recom-mends having signed contracts in place whenever possible.
of agencies use a blended rate in their estimating process
72%
is the average blended rate
$134 PER HOUR
Accounting/Operations Summary
202014 ANNUAL SURVEY
AC
CO
UN
TING
/OPER
ATIO
NS
In the area of agency compensation, 95% of agencies are typi-cally compensated on a project basis, stable from 94% in 2013; 75% are compensated on retainer/fee-based terms; 70% on commission or markup; and 7% on incentive-based terms.
When asked how they bill, 57% of agencies stated they bill by the job, an 8% increase from last year. Thirty-four percent bill by a combination of account and job, and only 7% bill strictly by the account, with 2% saying their billing methods vary. If jobs are not completed at the end of the month, 36% send a monthly bill for the work completed, and 29% wait until the job is completed to send a final bill.
The average time to collect receivables remains longer than desirable, with 42% of agencies waiting 45 days for funds from their clients. This is down from 49% last year so collection times have improved a bit. Another 39% wait 30 days, which is what agencies should strive for. Thirteen percent wait 60 days, which is slightly higher than last year at 11%. When asked about a line of credit, 75% stated they currently have one.
Concerning media billing practices, 36% of respondents say they bill as soon as the insertion order is cut. Another 24% wait until the final media bill arrives, and 21% bill for media once or twice a month. Although it is not always practical, billing as soon as the insertion order is cut is the preferred practice.
Agencies are still receiving above-average markups on outside purchases. This year, agencies reported receiving markups of 19-35% across the board for printing, photography/illustration, freelance writing and other outside purchases. We know clients are increasingly challenging markups and commissions, but agencies should work hard to retain these forms of compensa-tion.
Finally, when producing estimates and invoices, 56% of agen-cies customize per client preference. Twenty percent break invoices down to show agency versus outside services—but do not show vendor invoices to clients, and 21% provide a one-line invoice to clients.
Agencies are still receiving above-average
markups across the board
35%
19%22%
FREELANCE WRITING
PHOTOGRAPHY/ILLUSTRATION
PRINTING
212014 ANNUAL SURVEY
AC
CO
UN
TING
/OPER
ATIO
NS
ACCOUNTING/OPERATIONS DATA
1. Your agency is located in a: 36% Major city/metro area(pop. over 1,000,000)
23% Large city/metro area(pop. 500,000 to 999,999)
39% Small city/metro area(pop. 100,000 to 499,999)
2% Small town/rural area(pop. less than 100,000)
2. Your agency is a(n): 59% S-corporation
25% C-corporation
17% LLC
0% Sole proprietorship
3. Your agency’s top areas of expertise: 47% Healthcare
34% Education/Non-Profit
32% Banking/Financial
31% Industrial/Manufacturing
26% Retail
18% Food Services
13% Technology
11% Tourism/Hospitality
10% Automotive
9% Government
9% Real Estate
6% Agriculture
6% Telecom/Communications
23% Other
4. Use a blended rate: 72% yes
Your blended rate is: $134
5. Have a blended rate for different service categories: 19% yes
Categories for which you have blended rates: 79% Account Service
71% Creative
50% Public Relations
222014 ANNUAL SURVEY
AC
CO
UN
TING
/OPER
ATIO
NS
2014 NATIONAL AVERAGE HOURLY BILLING RATES
Position Average
Principal $181
Account Service 133
Account Planning 140
Art Direction 137
Creative/Design 136
Digital Design 129
Copywriting 130
Production 120
Project Management 122
Estimating 116
Proofreading 104
Research 132
Strategic Planning 154
Media Planning/Buying 127
Public Relations 134
Digital Strategy 140
SEO/SEM Facilitation 125
Social Media Facilitation 121
Web Content Development 133
Digital Production 124
Website Programming 129
Administrative/Clerical 89
232014 ANNUAL SURVEY
AC
CO
UN
TING
/OPER
ATIO
NS
ACCOUNTING/OPERATIONS DATA
6. Agency of Record for any clients: 79% yes
if yes, percentage that fits this description: 46%
Have a signed contract with those clients: 84% yes
7. Include an Ownership of Artwork clause in contracts
with vendors/clients: 75% yes
8. Are compensated on: 95% A project basis
75% Retainer/fee-based
70% Commission/markup
7% Incentive-based terms
3% Other
9. Have clients review agency services as a quality
control measure: 31% yes
10. Bill by: 57% Job
34% Combination
7% Account
2% Varies
11. If a job is not completed at the end of the month, you: 36% Send a bill every month forwork completed
29% Arrange to bill at set times before job begins
20% Bill when job is completed
15% Other
12. Average length of time to collect receivables: 2% 15 days
39% 30 days
42% 45 days
13% 60 days
4% 90 days
0% 120 days
13. Have a line of credit: 75% yes
242014 ANNUAL SURVEY
AC
CO
UN
TING
/OPER
ATIO
NS
ACCOUNTING/OPERATIONS DATA
14. Typically bill clients for media: 36% As soon as the insertion order is cut
24% When the final media billarrives
21% Once/twice a month
15% Other
15. Have a Sequential Liability disclaimer on your
insertion orders: 57% yes
16. Your average agency markups on: 19% Printing
22% Photography/Illustration
35% Freelance writing
20% Other outside purchases
17. Your average commission on media buys: 11%
18. With regard to client estimates and invoices, 56% Customizes per client
your agency: preference
21% Provides one-line/all inclusive
20% Breaks estimates/invoices into
agency v. outside services,
without showing vendor invoices
1% Routinely shows vendor invoices to clients
1% Has vendors bill clients directly
19. Your agency: 34% Insists on controlling print
production
32% Transfers responsibility for final
product to client when agency
is cut out of production
18% Offers to advise clients on
correct supervision of print
production
16% Other
252014 ANNUAL SURVEY
PLAN
NIN
G/N
EW B
USIN
ESS
According to this year’s survey, 76% of agencies develop an-nual business plans, up from 68% the year before. Seventy-four percent follow new business plans, a number that continues the upward trend of the past few years.
When asked how they identify new prospects, 96% of agencies state that they rely on referrals. Additionally, 83% rely on more business from current clients; 74% state their agency website is a good way to identify agency prospects; and 66% “keep their eyes peeled” for new opportunities.
Responding agencies averaged 16 new business pitches in 2013, a slight decrease from the previous year. Agencies suc-cessfully secured 6 new clients from these pitches —also a slight decrease from last year (8).
Few agencies (only 10%) set annual budgets for new business pitches, which decreased slightly from last year. For those who responded yes, the average annual budget was $21,750, signifi-cantly higher than last year’s budget of $14,633. In addition, we asked if agencies respond to RFPs —78% said they do.
Fifty-two percent of agencies use contact management soft-ware to manage their leads, up slightly from last year. It’s im-portant for agencies to use some type of system to manage their new business pipeline. This not only helps to keep the data organized but also supports a more efficient process.
When presenting their work, 75% of agencies use online portfo-lios. This number has remained stable in the last year—no sur-prise, since online portfolios are so easy to update and custom-ize at a moment’s notice. Less than half of agencies (40%) use traditional portfolios, while 59% use PowerPoint/Keynote and
new business pitches were made by agencies
in 2013
16
Planning/New Business Summary
agencies successfully secured 6 new clients
from these new pitches
262014 ANNUAL SURVEY
PLAN
NIN
G/N
EW B
USIN
ESS
13% use DVDs. While portfolio formats may vary, 82% of respon-dents include results-based case studies—which is stable from last year.
Agencies continue to have an impressive track record for hold-ing onto accounts. The average length of the longest-held account is 16 years. Sixty-six percent of respondents stated that their AGI increased from 2012-2013, and fully 60% stated that more business from existing clients was the most important fac-tor in this increase. The data underscores that clients are spend-ing again, which is good news for agencies.
is the average length of the longest-held account
16 YEARS
272014 ANNUAL SURVEY
PLAN
NIN
G/N
EW B
USIN
ESS
PLANNING NEW BUSINESS DATA
1. Develop a yearly agency business plan: 76% yes
2. Have a proactive new business plan: 74% yes
3. Methods used to identify new business prospects: 96% Referrals
83% More business from current clients
74% Agency website
66% KOEP (keeping our eyes peeled)
37% Persistent, 365-days-a-year effort
35% Cold calls
23% Direct mail
13% Traditional advertising
4. The primary way you acquire new business is: 56% Referrals
17% Persistent, 365-days-a-year effort
10% More business from current clients
4% Agency website
3% DIrect mail
3% Cold calls
1% KOEP (keeping our eyes peeled)
0% Traditional advertising
5. Approximate number of new business pitches
conducted in 2013: 16
Number of speculative pitches: 6
6. Number of pitches that gained new projects/accounts
for the agency: 6
7. Set an annual budget for new business pitches: 10% yes
The approximate annual budget is: $21,750
8. Respond to RFP’s: 78% yes
282014 ANNUAL SURVEY
PLAN
NIN
G/N
EW B
USIN
ESS
PLANNING/NEW BUSINESS DATA
9. Use contact management software: 52% yes
•ACT •Outlook
•ConstantContact •NowContact
•FilemakerPro •Salesforce.com
•FunctionPoint •Workamajig
10. Present the agency’s portfolio via: 75% Online
59% PowerPoint/Keynote
40% Traditional
13% DVD
11. Include results-based case studies: 82% yes
12. Considering only client accounts held for at least one year,
number of years you have serviced your longest-held
account: 16 years
13. Your AGI increased from 2012 to 2013: 66% yes
You most attribute this increase to: 60% Increased business fromexisting clients
23% Intensive new business program
7% Expanded agency services
3% Overall improvement in theeconomy
8% Other
14. The greatest challenge facing your agency is:
•Increasingbillablehours • Keepingprocessesinplaceasagencygrows
•Newcompetition • Findingtherighttalent
•Beingfairlycompensatedbyclients • Keepingupwithindustrytrends
292014 ANNUAL SURVEY
TECH
NO
LOG
Y/SO
FTWA
RETechnology/Software
SummaryTechnology remains at the forefront of agency life, a blessing or a curse. One thing is certain: agencies today could not func-tion without it.
Sixteen percent of respondents have full-time IT managers who address everyday technology issues. Many others (72%) con-tract with outside support providers, while another 18% rely on tech-savvy employees.
Electronic data policies are an important operations issue; 61% of respondents have these policies in place. Information is transferred in the blink of an eye these days, so it’s vital that employees understand the restrictions when using, transferring or sharing client and agency data. Proper use of social media is also top of mind, with 53% of agencies instituting parameters for all agency/client related social media issues.
Numerous industry-specific software systems are available to agencies, offering workflow, accounting, timekeeping, estimat-ing and CRM modules. When tackling estimating and traffic, 32% of respondents use Workamajig; 17% use Basecamp; 13% use Clients and Profits; 13% use Advantage; 11% use a manual system; and 6% use CurrentTrack.
For accounting functions, 34% use QuickBooks; 31% use Worka-majig; 13% use Advantage; 11% use Clients and Profits; and 4% use Control G. Finally, of those respondents who use software for media planning and buying, 38% use Strata; 16% use Smart-Plus; and 1% use Tapscan.
Many respondents (89%) use web-based applications to im-prove client communication, efficiency and functionality. Ninety-three percent use them for online meetings; 50% for cre-ative collaboration; 40% to help support telecommuting; 32% for CRM; and 30% for digital asset management.
of respondents have electronic data policies
in place
61%
302014 ANNUAL SURVEY
TECH
NO
LOG
Y/SO
FTWA
RE
TECHNOLOGY/SOFTWARE DATA
1. Have a full-time IT manager: 16% yes
For those with no IT manager, you address internal IT issues by: 72% Contracting with outside provider
18% Relying on tech-savvy employees
4% Other
2. Agency has an electronic data or social media policy: 61% Electronic data policy
53% Social media policy
3. Systems/software currently used for traffic and estimating: 32% Workamajig
17% Basecamp
13% Clients and Profits
13% Advantage
11% Manual system
6% CurrentTrack
5% Function Point
4% Custom System
3% FunctionFox
2% Control G
2% TimeFox
1% Paprika
1% Silent Partner
11% Other
4. Systems/software used for accounting: 34% QuickBooks
31% Workamajig
13% Advantage
11% Clients and Profits
4% Control G
3% MYOB
3% Peachtree
1% Custom System
1% Silent Partner
1% Paprika
4% Other
312014 ANNUAL SURVEY
TECHNOLOGY/SOFTWARE DATA TECH
NO
LOG
Y/SO
FTWA
RE
5. Systems/software currently used for media planning/buying: 38% Strata
16% SmartPlus
1% Tapscan
1% Telmar
45% Other
6. Your agency uses web-based applications: 89% yes
Use web-based applications for: 93% Online meetings
50% Creative collaboration
40% Support telecommuting
32% CRM
30% Digital asset management
8% Other
7. Type of digital asset management system(s) you use: 89% Hard drive/server storage
46% Online storage
23% CD archive library
5% Other
8. Promote your agency website with: 95% Social media
75% Blogs
71% SEO/SEM
61% Email marketing
8% Banner ads
7% Other
322014 ANNUAL SURVEY
DIG
ITAL SER
VIC
ES
More than half of agencies (69%) have dedicated interactive/digital groups, with 34% stating this group is distinct from the rest of the agency. Staffing for these groups is typically low, but has been increasing over the years: 41% have 1-2 dedicated employ-ees, 41% have 3-4 employees, and 15% have 5-10 employees.
Agencies continue to offer a wide range of services, including website development (95%); email marketing (89%); banner ad creation (87%); and website management (85%). An additional 83% offer social media and 75% offer SEO/SEM.
Compensation methods for SEO/SEM vary. Agencies being paid on an hourly basis (28%) remained stable from last year’s survey, while 24% are paid on retainers, and 38% are compen-sated through a combination of both methods.
Revenues and expectations for digital growth are also stable from last year, with agencies forecasting that 19% of their rev-enue will come from digital services in 2014.
When asked which online vehicles agencies create/manage for their clients, 95% stated Facebook; 73% said Twitter; 66% stated blogs and 61% said LinkedIn; showing an overall increase in the use of social media. Additionally, when asked which online vehicles they create and manage for themselves, 94% stated Facebook; 81% said Twitter; 78% stated LinkedIn and 71% said blogs.
Finally, most agencies (86%) are making an effort to quantify their digital media efforts using tracking and reporting services. Of these, 97% use Google Analytics, 9% use DoubleClick, 5% use Omniture and 11% use other tools. In addition, 60% are providing social media tracking and reporting to clients, with 49% using HootSuite Pro; 24% using Sprout Social; and 17% using Radian6.
of agencies have dedicated interactive
digital groups
69%
Digital Services Summary
1-2 employees
3-4 employees
5-10 employees
11-15 employees
41%
3%
41%15%
Interactive groups have:
332014 ANNUAL SURVEY
DIG
ITAL SER
VIC
ES
DIGITAL SERVICES DATA
1. Your agency has an interactive/digital group: 69% yes
If yes, this group is distinct from the rest of the agency: 34% yes
2. Number of full-time staff assigned to this group: 41% 1-2
41% 3-4
15% 5-10
3% 11-15
0% More than 15
3. The following services are offered by your 95% Website development
interactive/digital group: 89% Email marketing
87% Banner ad creation
85% Website management
83% Social media
75% SEO/SEM
73% Blogs
73% Online video
67% Online media buying
41% App development
31% eBooks/Digital publications
24% SMS/MMS
18% Viral marketing
18% Podcasting/vodcasting
7% Other
4. Your compensation structure for SEO/SEM services: 28% Hourly
38% Combination
24% Retainer
9% Other
5. Your compensation structure for social media services: 32% Hourly
35% Combination
29% Retainer
4% Other
342014 ANNUAL SURVEY
DIG
ITAL SER
VIC
ES
DIGITAL SERVICES DATA
6. In 2013, approximate total of your agency’s revenue
derived from interactive/digital projects: $683,447
Approximate percentage of your 2014 revenue that will
come from interactive digital: 19%
7. You create/manage the following online vehicles 95% Facebook page
for your clients: 73% Twitter accounts
66% Blogs
61% LinkedIn presence
20% Other
8. You create/manage these online vehicles for your agency: 94% Facebook page
81% Twitter accounts
71% Blogs
78% LinkedIn presence
19% Other
9. You offer digital media tracking and reporting services
to your clients: 86% yes
Services offered: 97% Google Analytics
9% DoubleClick
5% Omniture
11% Other
10. You offer social media tracking and reporting
services to your clients: 60% yes
Services offered: 49% HootSuite Pro
24% Sprout Social
17% Radian6
3% Viralheat
32% Other
352014 ANNUAL SURVEY
AG
ENC
Y PR
INC
IPAL IN
FOR
MA
TION
According to this year’s survey, the average principal has been at his/her current agency for 21 years, and in the advertising business for 27 years.
Principals participate in a wide variety of activities, but the top function they perform is financial (26%). Twenty-five percent participate in account service as a primary responsibility, with 22% focusing on new business, and 13% on strategy.
As most will admit, it’s often difficult for agency principals to take time off to enjoy a vacation. Fortunately, 86% managed to take a vacation this year. The majority of agency principals are college educated; 73% have college degrees and another 17% have graduate degrees.
The average age of responding principals is 52. Many principals have family members working in the business; 49% work with their children; 46% work with their spouses and 23% work with other relatives. Working with family can be challenging at times but the rewards can be enormous. It’s great to see so many agencies run as family businesses.
When asked if they are happy in the agency business, 98% state that they are. Forty-two percent said they chose advertis-ing as their field/career, and another 34% stated they began working in the business purely by chance. Transitions from client to agency side are also common, with 7% stating they used to work on the client side of the business.
Twenty-nine percent of Second Wind agencies own their office space, which is stable with last year. Sixty-one percent rent their space and 9% own their buildings and serve as landlords to others.
of respondents said they are happy in the
agency business
is the average time agency principals have
been at their current agencies
21 YEARS
Agency Principal Information Summary
98%
362014 ANNUAL SURVEY
AG
ENC
Y PR
INC
IPAL IN
FOR
MA
TION
Most agency principals keep up with industry news by reading trade publications; 59% actively read AdAge; 56% read Ad-week; 26% read Communication Arts; 21% read FastCompany; 15% read Businessweek; 11% read Wired; and 11% read Forbes.
Many agency principals participate in industry organizations and associations in addition to Second Wind; 65% participate in their local Chambers of Commerce; 52% belong to local ad clubs; 32% belong to AAF; and 27% belong to AMA.
372014 ANNUAL SURVEY
AG
ENC
Y PR
INC
IPAL IN
FOR
MA
TION
AGENCY PRINCIPAL DATA
1. You have been at your present agency an average of: 21 years
2. You have been in the advertising agency business an 27 years
average of:
3. Your average age is: 52 years
4. Your primary daily responsibility in the agency other than 26% Financial
general management is: 25% Account service
22% New business
13% Strategy
4% Creative
1% Media
9% Other
5. You last took a vacation: 86% This year
8% Last year
4% Two or more years ago
2% Never
6. Your highest completed level of education is: 73% College
17% Graduate school
10% High school
7. You are: 86% Married
9% Divorced
5% Single
8. Members of your immediate family working with you in 49% Children
the agency: 46% Spouse
23% Other relative
9. You are happy in the agency business: 98% yes
10. How you came to be in the advertising/marketing business: 42% Selected as career
34% Purely by chance
12% Family business
7% Formerly on client side
5% Other
382014 ANNUAL SURVEY
AG
ENC
Y PR
INC
IPAL IN
FOR
MA
TION
AGENCY PRINCIPAL DATA
11. At the agency’s present location, you: 61% Rent the space
29% Own the space
9% Own a building and serve as
landlord to other businesses
1% Work at home
12. Trade publications you read most often are: 59% AdAge
56% Adweek
15% Businessweek
26% Communication Arts
4% Entrepreneur
21% FastCompany
11% Forbes
10% Fortune
1% Graphic Design USA
8% HOW
14% INC
6% Print
11% Wired
32% Other
13. Which industry websites or blogs do you visit/read most often?
•AdAge • B2Bonline
•FastCompany • HarvardBusinessReview
•Mashable • MediaPost
•Ragan • SethGodin
14. Professional design/advertising/business associations to 10% 4A’s
which you belong: 32% AAF
11% AIGA
27% AMA
13% BMA
65% Chamber of Commerce
1% DMA
1% EMMA
52% Local Ad Club
1% Local Art Directors Club
36% Other
392014 ANNUAL SURVEY
DETA
ILED SA
LARIES &
HO
URLY RA
TES
Detailed Salaries and Hourly RatesThe following pages provide a more detailed view of the sal-ary and hourly rate data collected through the annual survey process. In addition to a comparison of 2014 and 2013 national salaries and hourly rates, we provide data by market size and size of agency.
We hope the detailed breakdown will allow you to pinpoint data that is relevant to your agency’s specific size and location.
While we make every attempt to gather data on as many agency positions as possible, some titles may not appear every year due to varying sample sizes.
402014 ANNUAL SURVEY
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2014 NATIONAL AVERAGE SALARIES
Position Average Average High Average Low
Account Supervisor/Director $90,748 $118,943 $62,553
Account Manager 73,524 112,458 34,590
Account Executive 55,303 73,900 36,707
Account Planner 77,125 110,919 43,331
Account Assistant 35,345 42,290 28,399
Creative Director 108,231 160,087 56,375
Assistant Creative Director 85,439 107,254 63,624
Digital Creative Director 82,088 104,940 59,237
Art Director 64,188 85,324 43,052
Senior Designer 61,825 73,305 50,344
Designer 48,484 57,614 39,354
Entry Level Designer 34,919 40,836 29,002
Production Artist 45,242 52,577 37,908
Senior Digital Designer 65,343 80,273 50,412
Digital Designer 52,709 64,821 40,596
Digital Production Artist 43,164 49,661 36,666
Senior Copywriter 71,638 85,165 58,110
Copywriter 54,688 71,179 38,197
Entry Level Copywriter 35,103 41,880 28,326
Production Manager 59,292 82,676 35,907
Traffic Manager 48,600 63,748 33,451
412014 ANNUAL SURVEY
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2014 NATIONAL AVERAGE SALARIES
Position Average Average High Average Low
Project Manager $52,749 $66,078 $39,421
Controller/Business Manager 67,947 86,522 49,372
CEO 165,590 247,513 83,667
CFO 99,725 135,464 63,986
COO 129,305 180,789 77,820
Bookkeeper 44,808 69,725 19,892
Receptionist 35,314 44,058 26,571
Media Director 73,406 105,843 40,968
Media Planner/Buyer 52,222 77,240 27,205
Digital Media Strategist 58,132 82,766 33,499
Public Relations Director 78,487 104,053 52,921
Public Relations Account Executive 53,075 67,375 38,775
Research Director 85,000 115,424 54,576
IT Manager 76,735 104,311 49,159
Web Developer/Programmer 62,185 79,298 45,072
422014 ANNUAL SURVEY
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2013 NATIONAL AVERAGE SALARIES
Position Average Average High Average Low
Account Supervisor/Director $95,336 $125,232 $65,440
Account Manager 69,530 84,777 54,284
Account Executive 51,486 63,441 39,531
Account Planner 68,136 90,111 46,161
Account Assistant 32,205 40,870 23,539
Creative Director 94,375 134,559 54,191
Assistant Creative Director 77,810 98,786 56,834
Digital Creative Director 87,429 113,607 61,251
Art Director 58,290 75,982 40,599
Senior Designer 58,305 71,422 45,189
Designer 44,950 53,462 36,438
Entry Level Designer 33,836 39,591 28,081
Production Artist 44,486 57,114 31,858
Senior Digital Designer 65,673 81,079 50,268
Digital Designer 49,504 55,902 43,105
Digital Production Artist 49,200 57,055 41,345
Senior Copywriter 65,199 82,619 47,779
Copywriter 48,949 61,394 36,504
Entry Level Copywriter 31,168 37,118 25,219
Production Manager 58,502 78,721 38,283
Traffic Manager 45,856 57,534 34,177
432014 ANNUAL SURVEY
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2013 NATIONAL AVERAGE SALARIES
Position Average Average High Average Low
Project Manager $51,455 $72,983 $29,928
Controller/Business Manager 72,909 94,907 50,911
Bookkeeper 40,345 53,320 27,370
Human Resources Manager 55,800 70,558 41,042
Receptionist 34,405 40,847 27,964
Media Director 73,620 103,832 43,408
Media Planner/Buyer 47,069 59,925 34,213
Digital Media Strategist 80,321 120,635 40,007
Public Relations Director 80,186 102,707 57,665
Public Relations Account Executive 47,221 57,539 36,903
Research Director 75,278 105,857 44,699
Research Assistant 38,710 58,245 19,175
IT Manager 68,627 90,052 47,202
Web Developer/Programmer 54,913 71,218 38,607
442014 ANNUAL SURVEY
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2014 NATIONAL AVERAGE SALARIES BY MARKET SIZE*
Position All Markets Small Town/ Small City
Large City/ Major City
Account Supervisor/Director $90,748 $90,954 $89,974
Account Manager 73,524 69,333 76,878
Account Executive 55,303 58,830 51,716
Account Planner 77,125 80,688 70,000
Account Assistant 35,345 34,826 35,628
Creative Director 108,231 93,271 107,546
Assistant Creative Director 85,439 84,671 85,900
Digital Creative Director 82,088 75,849 85,000
Art Director 64,188 59,117 68,794
Senior Designer 61,825 60,574 63,677
Designer 48,484 47,074 49,100
Entry Level Designer 34,919 33,080 36,990
Production Artist 45,242 42,842 47,181
Senior Digital Designer 65,343 62,563 66,412
Digital Designer 52,709 52,307 52,950
Digital Production Artist 43,164 41,250 44,257
Senior Copywriter 71,638 66,734 74,825
Copywriter 54,688 52,058 56,567
Entry Level Copywriter 35,103 30,858 37,650
Production Manager 59,292 51,767 69,044
Traffic Manager 48,600 48,281 48,823
*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)
452014 ANNUAL SURVEY
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2014 NATIONAL AVERAGE SALARIES BY MARKET SIZE*
Position All Markets Small Town/ Small City
Large City/ Major City
Project Manager $52,749 $51,782 $53,281
Controller/Business Manager 67,947 65,623 70,468
CEO 165,590 190,483 153,144
CFO 99,725 102,500 98,536
COO 129,305 112,667 135,960
Bookkeeper 44,808 35,917 51,160
Receptionist 35,314 31,893 37,722
Media Director 73,406 60,338 80,880
Media Planner/Buyer 52,222 53,071 52,580
Digital Media Strategist 58,132 61,069 56,600
Public Relations Director 78,487 66,680 87,569
Public Relations Account Executive 53,075 54,063 52,417
Research Director 85,000 71,750 111,500
IT Manager 76,735 61,667 79,964
Web Developer/Programmer 62,185 55,876 66,319
*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)
462014 ANNUAL SURVEY
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2014 NATIONAL AVERAGE SALARIES BY AGENCY SIZE
Position All Agencies
< $3 Million in Billings
$3+ Million in Billings
Account Supervisor/Director $90,748 $79,944 $95,699
Account Manager 73,524 62,703 78,467
Account Executive 55,303 50,595 57,709
Account Planner 77,125 43,167 88,444
Account Assistant 35,345 32,047 36,319
Creative Director 108,231 98,664 115,773
Assistant Creative Director 85,439 68,113 87,914
Digital Creative Director 82,088 63,189 87,500
Art Director 64,188 65,604 63,622
Senior Designer 61,825 53,695 65,440
Designer 48,484 46,056 49,840
Entry Level Designer 34,919 35,700 34,630
Production Artist 45,242 45,549 45,162
Senior Digital Designer 65,343 62,463 66,450
Digital Designer 52,709 45,000 54,488
Digital Production Artist 43,164 41,200 44,286
Senior Copywriter 71,638 63,507 73,962
Copywriter 54,688 57,167 54,780
Entry Level Copywriter 35,103 34,000 35,471
Production Manager 59,292 49,685 62,814
Traffic Manager 48,600 39,779 51,775
472014 ANNUAL SURVEY
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2014 NATIONAL AVERAGE SALARIES BY AGENCY SIZE
Position All Agencies
< $3 Million in Billings
$3+ Million in Billings
Project Manager $52,749 $53,622 $52,446
Controller/Business Manager 67,947 63,705 70,022
CEO 165,590 147,544 175,996
CFO 99,725 93,300 101,867
COO 129,305 73,000 140,847
Bookkeeper 44,808 32,779 45,943
Receptionist 35,314 30,127 36,249
Media Director 73,406 68,188 75,380
Media Planner/Buyer 52,222 44,033 54,328
Digital Media Strategist 58,132 54,137 59,964
Public Relations Director 78,487 74,629 81,271
Public Relations Account Executive 53,075 53,000 53,577
Research Director 85,000 60,000 97,500
IT Manager 76,735 57,500 82,654
Web Developer/Programmer 62,185 53,790 67,809
482014 ANNUAL SURVEY
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2014 NATIONAL AVERAGE HOURLY BILLING RATES
Position Average Average High Average Low
Principal $181 $245 $117
Account Service 133 162 105
Account Planning 140 175 106
Art Direction 137 170 105
Creative/Design 136 169 104
Digital Design 129 155 104
Copywriting 130 156 103
Production 120 149 91
Project Management 122 147 97
Estimating 116 144 89
Proofreading 104 132 75
Research 132 168 95
Strategic Planning 154 201 107
Media Planning/Buying 127 163 91
Public Relations 134 167 102
Digital Strategy 140 180 101
SEO/SEM Facilitation 125 150 100
Social Media Facilitation 121 146 96
Web Content Development 133 159 108
Digital Production 124 155 93
Website Programming 129 156 102
Administrative/Clerical 89 119 58
492014 ANNUAL SURVEY
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2013 NATIONAL AVERAGE HOURLY BILLING RATES
Position Average Average High Average Low
Principal $183 $247 $120
Account Service 133 169 97
Account Planning 143 181 106
Art Direction 135 161 109
Creative/Design 130 160 101
Digital Design 132 165 100
Copywriting 128 153 102
Production 118 146 90
Project Management 118 147 89
Estimating 114 142 87
Proofreading 105 140 71
Research 129 165 93
Strategic Planning 153 191 114
Media Planning/Buying 121 151 91
Public Relations 133 164 102
Digital Strategy 144 181 108
SEO/SEM Facilitation 124 149 99
Social Media Facilitation 123 148 97
Web Content Development 135 163 106
Digital Production 130 158 102
Website Programming 133 163 103
Administrative/Clerical 91 126 57
502014 ANNUAL SURVEY
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2014 AVERAGE HOURLY RATES BY MARKET SIZE*
Position National Small Town/ Small City
Large City/ Major City
Principal $181 $156 $199
Account Service 133 126 141
Account Planning 140 131 149
Art Direction 137 127 146
Creative/Design 136 128 143
Digital Design 129 123 134
Copywriting 130 125 134
Production 120 119 122
Project Management 122 117 127
Estimating 116 115 119
Proofreading 104 103 107
Research 132 127 139
Strategic Planning 154 144 164
Media Planning/Buying 127 123 132
Public Relations 134 127 144
Digital Strategy 140 133 147
SEO/SEM Facilitation 125 116 134
Social Media Facilitation 121 116 128
Web Content Development 133 124 166
Digital Production 124 120 129
Website Programming 129 124 133
Administrative/Clerical 89 91 87
*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)
512014 ANNUAL SURVEY
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2014 AVERAGE HOURLY RATES BY AGENCY SIZE*
Position All Agencies
< $3 Million in Billings
$3+ Million in Billings
Principal $181 $155 $199
Account Service 133 125 138
Account Planning 140 130 146
Art Direction 137 132 141
Creative/Design 136 127 143
Digital Design 129 124 133
Copywriting 130 125 133
Production 120 116 123
Project Management 122 117 125
Estimating 116 116 117
Proofreading 104 104 104
Research 132 121 139
Strategic Planning 154 136 167
Media Planning/Buying 127 119 132
Public Relations 134 125 140
Digital Strategy 140 130 148
SEO/SEM Facilitation 125 120 130
Social Media Facilitation 121 119 124
Web Content Development 133 127 164
Digital Production 124 119 128
Website Programming 129 126 131
Administrative/Clerical 89 91 87
*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)
The Second Wind Annual Agency Survey polls more than 700 member agencies,
design studios and public relations firms to gather comparative data for
our members’ exclusive use.
Total respondents were 130; approximately 20% of the total
membership. Not all respondents supplied answers for all questions.
No figures herein supplied are intended to be taken as implied standards,
but are supplied for review and comparison.
Please call Second Wind at 610-374-9093 with any questions.